A company transferred ownership of one of its divisions to the company’s existing shareholders, and the shareholders received new stock representing separate ownership rights in the division. That process is referred to as a

Liquidation.
Spin-off.
Leveraged buyout.
Managerial buyout.

Correct - Your answer is correct.

Wrong - Your answer is wrong.

Detailed Answer

Answer (B) is correct. A spin-off is a type of restructuring that is characterized by establishing a new and separate entity and transferring its newly issued stock to the shareholders of the original company.